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Co-located renewables and battery storage in the UK: project finance structuring, contracted revenues and optimisation, ancillary services, construction and grid connection risk, sequencing and degradation

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Practice notes
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An increasing cohort of developers is reporting that co-located battery storage schemes have secured project finance. This marks significant progress, given that as recently as 2018 grid-scale batteries were treated as an emerging asset class, with many funders having written them off as unsuitable for project finance.

This Practice Note sets out key considerations for both lenders and developers looking to project finance co-located battery storage projects.

For more information on:

  • construction considerations for co-located battery storage projects, see Practice Note: Energy storage—construction issues
  • property aspects regarding co-located battery storage projects, see Practice Note: Battery storage projects—property issues
  • planning matters, including in relation to co-located battery storage, see Practice Note: The planning regime for energy storage in England and Wales
  • battery storage projects more broadly, see Practice Notes: Scaling up energy storage—revenue opportunities in Great Britain and Energy storage technologies in the UK
  • UK regulatory and licensing matters associated with energy storage projects, see Practice Note: Energy storage—the evolving regulatory regime and renewable subsidy position

For further practical guidance on the financing of energy, power and resources projects across a number of sectors, including those...

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Jessica Hastings
Jessica Hastings

Jessica Hastings joined the finance team in Bracewell’s London office in 2021. She advises lenders and sponsors on finance transactions in the energy and infrastructure sectors, including project finance, acquisition finance and syndicated lending transactions. Prior to joining Bracewell, Jessica undertook a secondment to Mexico City, advising on energy matters including the implementation of the Mexican energy market reforms....

Oliver Irwin
Oliver Irwin

Oliver advises lenders and sponsors on the development and financing of cross-border energy and infrastructure projects across a broad range of industries, many of which are the first of its kind in their sector. He has significant experience advising on multi-sourced project financings involving export credit agencies, multilaterals and development finance institutions, as well as commercial banks and traders. Oliver is frequently involved in the negotiation and structuring of complex intercreditor matters.  IFLR1000 has identified Oliver as a “Rising Star” or “Highly Regarded” every year since 2013, and he has been ranked by Chambers UK each year since 2012, where clients report that Oliver is considered “truly outstanding” and highlight his “knowledge of debt financing” and “drive to get the deal done.” In the 2022 edition of Chambers UK clients comment, “Oliver is calm, cool, collected ꟷ he knows his stuff, which shows...

Nicholas Neuberger
Nicholas Neuberger

Nicholas Neuberger is a corporate lawyer with a particular focus on international transactional matters within the energy sector. He has advised on a wide range of cross-border acquisitions, having worked on deals and projects in more than 40 jurisdictions. He has particular experience in the structuring and development of energy projects, including in relation to shareholder and investment arrangements....

Web page updated on 21/05/2026

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